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MCAP (Marathon) sells office building 5 keizers to Union Investment

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A Fund affiliated with MCAP Global Finance (UK) LLP, the European subsidiary of New-York headquartered Marathon Asset Management LP (‘Marathon’) has sold the ‘5 Keizers’ prime office property in Amsterdam to Union Investment for c. EUR 142 million. The asset comprises approximately 15,000 sq m of lettable commercial space spread over five interlinked canal buildings.

Located at Keizersgracht 271 – 287, ‘5 Keizers’ is one of the largest freeholds in the city of Amsterdam. The property is situated within the heart of the UNESCO-listed historical Canal Ring district. The property had been substantially renovated between 2014 and 2016 to provide high quality office space. During Marathon’s ownership, the asset was repositioned to a unique prime office building, by re-arranging the tenant demises to allow large contiguous floorplates of up to 2,500sq m, making them accessible via a refurbished central entrance and giving them access to a beautifully re-modelled courtyard garden. The asset now provides great flexibility to meet the individual needs and corporate cultures of its tenants, while preserving the character and realm of a classic Canal-side building.

“We are delighted to have completed the transformation of this unique asset over the last three years together with our asset managers at Cording Real Estate Group. With the sale, we hand over the property to an institutional investor with a great breadth of experience in the Dutch market. This will give the asset with its current and future tenants a solid basis for a successful future”, said Jochen Kauschmann, head of asset management at Marathon.

“The Netherlands is currently one of the most attractive real estate markets in Europe. The acquisition of the 5 Keizers property represents a rare opportunity to invest in Amsterdam’s historic canal district,” said Martin Schellein, head of Investment Management Europe at Union Investment Real Estate GmbH. “Up to now, our holdings have primarily been located in the city’s modern South Axis business district. This new transaction expands our investment footprint and we are confident that the property has the potential to provide us with strong, sustainable rental income.” Following this acquisition, Union Investment’s real estate funds hold 15 properties in the Netherlands across a variety of use types and with a total value of some EUR 1.3 billion. Amsterdam accounts for 10 properties worth around EUR 900 million.

The property’s office accommodation is currently leased to five tenants; Nyenrode Business University, the headquarter of H&M Benelux, SThree’s brands Huxley and Madison Black, the headquarter of technology firm Elasticsearch, the European headquarter of Kids II, a manufacturer of baby toys and equipment, and the retail unit is let to high-end supermarket chain Marqt,.

The seller was advised by Savills (commercial and technical) and Loyens & Loeff (legal). The buyer was advised by Cushman & Wakefield (commercial), Drees & Sommer (technical) and Dentons (legal).